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Homeowner Perks Under Fire

The U.S. government has long subsidized homeownership through tax deductions and loan guarantees. Now, it is re-examining whether it can afford to underwrite the American Dream.

Earlier this month, a presidential deficit commission proposed reducing the mortgage-interest deduction, the largest government subsidy for housing. Next month, the White House will propose an overhaul of mortgage titans Fannie Mae and Freddie Mac amid a...